In the period 2021 – 2025, in Ho Chi Minh City, there are about 244,500 people wishing to rent and buy social housing and the city plans to develop 30,500 houses to meet.
Ho Chi Minh City Department of Construction has just reported to the Ministry of Construction on the project “investing in building at least 1 million social housing apartments for low-income people and workers in industrial zones”.
Regarding the demand for social housing in Ho Chi Minh City, the Department of Construction expects that by December 2025, there will be about 244,500 people in need of this type of housing. To meet demand, in the period of 2021 – 2025, Ho Chi Minh City plans to develop 30,500 social housing units.
Also during this period, the demand for workers’ accommodation in Ho Chi Minh City was about 68,538 rooms. Meanwhile, HCMC plans to develop only 4,500 rooms for rent.
In the period 2021 – 2025, Ho Chi Minh City is expected to develop 30,500 social housing.
In the period 2025 – 2030, it is expected that there will be about 239,100 people in need of social housing and Ho Chi Minh City is expected to develop 50,000 apartments.
The demand for housing for workers in the period 2025 – 2030 is about 71,288 rooms. Meanwhile, HCMC only plans to develop about 8,000 rooms for workers in this period.
According to the Department of Construction, in 2022, in Ho Chi Minh City, there is only 1 social housing project completed and put into use with a scale of 260 apartments.
In addition, there are 9 social housing projects and 2 worker accommodation projects have started and broke ground with the scale of 8,666 apartments and 1,400 rooms, respectively. There are 70 social housing projects and 7 worker accommodation projects that have had investment policies but have not been implemented.
According to Mr. Huynh Thanh Khiet – Deputy Director of Ho Chi Minh City Department of Construction, in the process of managing and developing social housing and worker accommodation, the unit found that there are many difficulties and obstacles. Therefore, the Department of Construction proposed the People’s Committee of Ho Chi Minh City to request the Ministry of Construction to provide specific guidance on many problems.
The first is the method of determining the cost of compensation for site clearance and investment in technical infrastructure to pay investors when handing over 20% of the land in commercial housing projects to the State. It is necessary to appoint an agency in charge of appraising and approving the above expenses to refund to the investor.
The process of investing in social housing currently has to take more steps than commercial housing, leading to a longer implementation time and not attracting investors. Therefore, the Department of Construction proposed the People’s Committee of Ho Chi Minh City to propose relevant ministries and branches to simplify the procedures for social housing investment.
For commercial housing projects, urban development with a land use scale from 2ha to 10ha is approved for investment in the period from December 2015 to April 2021. If the investor adjusts the project implementation schedule according to the Law on Investment, it is recommended to still perform the social housing obligation at the time of investment approval.
Regarding the implementation of social housing obligations for commercial housing projects, urban areas with land use scale from 2ha to 10ha, the People’s Committee of Ho Chi Minh City proposes to allow the City to decide on one of three forms: 20% of the residential land fund to build social housing or transfer the equivalent housing fund or pay the corresponding 20% land fund value.